Gold hits highest since November

Gold has jumped one per cent to its highest in nearly three months as worries about the political landscape in the United States and Europe, and a subdued dollar, reinforced investor interest.

Spot gold was up 1.1 per cent at $US1,233.01 an ounce by 3:02pm EST (0702 Tuesday GMT), after touching $US1,233.80 -- a level last reached on November 11.

US gold futures settled up 0.9 per cent at $US1,232.10.

Political uncertainty in the United States has been fuelled by President Donald Trump's policies, the most controversial of which is a temporary ban on entry by people from seven mostly Muslim countries.

A US judge put a nationwide block on Trump's order on Friday.

"The initial euphoria of the Trump presidency seems to be fading and the elections in Europe are making people nervous. The uncertainty does mean upside for prices," said Warren Patterson, commodities strategist at ING.

"Since the start of the year we've seen the dollar consistently weaker, but physical demand from (top consumers) China and India is still weak and a negative for gold."

Elections in the Netherlands, France and Germany this year are also adding to jitters.

"After several unsuccessful attempts, gold has finally broken the $US1,220 resistance level. While it holds above this level, the path of least resistance would be to the upside now," said Fawad Razaqzada, technical analyst for Forex.com.

"Consequently, gold could rise towards the next resistance level at $US1,250 next."

China's net gold imports in December, at 51.51 tonnes, were down 60 per cent from December 2015.

Meanwhile, gold demand in India fell 21.2 per cent in 2016 from the previous year as new rules dampened demand.

The dollar's value against a basket of currencies has fallen more than 3 per cent since January 3.

That is partly because of expectations that the US central bank will wait to see what happens on the political and economic fronts after Friday's monthly jobs report showed wages barely rose.

"Gold's solid showing so far this year ... is mostly attributable to a weaker dollar and last week's standoffish Federal Reserve statement with regard to when it would next move on rates," INTL FCStone analyst Edward Meir said in a note.

"Geopolitical concerns will now be magnified by the Trump administration's more aggressive tone in the foreign policy arena and trade will also remain a key flash point."

Spot silver rose 1.5 per cent to $US17.72 an ounce, while platinum gained 1 per cent at $US1,012.80, a three-month high. Palladium added 3.3 per cent to $US770.75, the highest since January 25.